Sunoco Logistics Partners LP announced Monday that it is purchasing a crude terminal and gathering system in the Permian Basin from Vitol Group for $760 million plus working capital as the company strategizes to expand its presence in the prolific oil basin.
Also included in the deal is Sunoco’s purchase of the 50-percent interest in SunVit Pipeline LLC.
Because the Permian Basin is one of the few areas where drilling is still profitable at current oil prices, Sunoco is taking advantage of the real estate and hopes to continue growing its crude platform in the basin.
Energy Transfer Partners LP and Energy Transfer Equity LP, owners of Sunoco Logistics Partners LP, support the acquisition, according to Michael Hennigan, President and CEO for Sunoco Logistics Partners LP.
“[Energy Transfer] shares our vision of the substantial growth opportunities from production in the Permian Basin… Long-term, with Energy Transfer’s growing crude gathering presence in West Texas combined with our extensive mainline crude platform and gathering assets, we expect growth opportunities for our partnerships in this very competitive region,” Hennigan said in a statement.